A New Mexico rent-to-own agreement is a rental contract with an added option for the tenant to purchase the property in the future. The landlord and tenant negotiate and agree upon the terms at the time of signing, including the monthly rental payments, each party’s rights, and the rules for the property’s use.
They also include provisions specific to the purchase option. For example, they detail the option period, option fee, and rent credit that goes toward the final purchase price. If a tenant decides to buy the property at the end of the lease, they pay the locked-in purchase price within the document and finalize the sale using a residential purchase agreement.
It is advised you conduct a thorough screening of prospective tenants using a rental application before finalizing any rental contracts.
Landlord-Tenant Laws: Chapter 47, Article 8 (Owner-Resident Relations)
Purchase Agreement Laws: Chapter 47, Article 1 (Conveyances and General Provisions) and Chapter 47, Article 13 (Real Estate Disclosure)
